IN A LETTER here earlier this month, leading advocate and former States member Roger Perrot touched, in a much wider item of correspondence, on financial services regulation and what he described as ‘the continuing wish of our regulators to regulate to a platinum standard’. Despite that, Guernsey and Jersey had managed to outpace their rivals.
In part, he was referring to comments earlier in the year by HM Procureur in which he said that Guernsey had no option other than to ensure that it was squeaky clean if it wished to continue trading with major international players. Yet the level of regulation and the way it is imposed are already of concern to Court Row and other practitioners.
After the Procureur delivered his comments to the Institute of Directors, this newspaper asked Treasury and Resources whether being in the top five regulated territories was government policy and, if so, what process had led to that decision and what the consequences of it were.
The point was never answered.
Last year, there was considerable controversy over the introduction of section 67 into tax law here, a clause that was regarded as making giving taxation advice nigh impossible.
The then Treasury minister was asked by this newspaper why something so damaging to the industry had been included in the legislation and the response was, ‘Oh, I think the Procureur wanted it…’.
It was also HM Procureur who had earlier visited the USA to meet US presidential candidate Barack Obama’s officials to explain to them why the Channel Islands should be treated differently from places like the Cayman Islands, which are loathed.
That visit poses some difficult questions. Because the Policy Council has recently confirmed that the Crown Officers are subject to no political scrutiny, nor are they elected despite having a seat in the House, but are effectively appointed by the UK Ministry of Justice, just whose interests were being represented at the Obama meeting? How do such meetings influence the future course of regulation, which comes from the Crown Officers as States legal advisers?
The integrity and ability of Guernsey’s Procureurs have never been questioned – nor do we do so now – but the current system places them in an impossible position: unelected, unaccountable and lacking transparency yet seemingly the face of the States and its regulatory policies.
Article posted on 13th August, 2008 - 2.30pm
One Article Comment
Perhaps you could find out who paid for the Attorney to visit Washington?
Was it his masters in Whitehall or the Guernsey taxpayer? Perhaps a refund is in order?
Whilst the integrity of the Procureur is not questioned, it is somewhat generous to make such sweeeping assumptions on ability. Some have been more able than others.